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Benchmarks for Employee Stock Based Compensation in SaaS Startups

Tom Tunguz

How much should your startup budget for its employee stock option pool? Another way is to look at the cash based cost of the stock based compensation. The chart above shows the average stock-based compensation (SBC) per employee by years since founding across the basket of publicly traded SaaS companies.

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When Startup Compensation Isn't About the Money

Tom Tunguz

It’s the most provocative idea about employee compensation I’ve found. But, this compensation strategy must be complemented with a plan to reward the exceptions, the 10xers. I’ve seen these types of rewards work well at startups, too. And for most of the company, this strategy works very well.

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Six Key Benchmarks for Your SaaS Startup

Tom Tunguz

Benchmarking is a great tool, if you can get access to representative data. Pacific Crest and David Skok have released a fantastic survey benchmarking SaaS metrics for early and growth stage companies. Below is my list of the six most important benchmarks and observations from that report. Sales commission as % of ACV 9%.

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The Unexpected Compensation Trends of Post-Series A Startup Founder/CEOs

Tom Tunguz

There’s an interesting phenomemon occurring in founder compensation for post-Series A companies: founding CEOs are swapping cash for larger equity stakes in their companies. In any case, this patterns startups in two ways: First, smaller salaries for CEOs reduces burn and lengthens the time startups can iterate their way to success.

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Building A Sales Development Function for Early Stage Startups with Sally Duby

Mucker Capital

SDR Strategy & Model Checklist In the intricate world of sales development, finding the balance between art and science is crucial for a startup's success. Instead, identifying a narrow target market and focusing efforts there is key, especially for startups with limited resources.

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2021 Financial & Operating Benchmarks: How to Become One of the ‘Haves’ of SaaS

OpenView Labs

In 2021 the ‘ Rule of 40’ died, according to our latest 2021 Financial & Operating Benchmarks report that launched last week. . The new data reveals a similar picture for private SaaS startups. . Look for ways to quantify customer insights to develop proprietary benchmarks and communicate the value of your product.

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Startup Best Practices 16 - Option Pool Planning

Tom Tunguz

No matter the stage of the business, startups need to manage the size of their Employee Stock Option Pool or ESOP. Like a financial budget, ESOP budgets help a startup plan how to finance its growth. When a startup is young, the equity has the potential to be quite valuable, but isn’t worth very much at the time.

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